Summary of Conference Call Notes on China Data Centres Equities Industry Overview - The focus is on the China data centre industry, specifically companies GDS Holdings (GDS) and VNET Group (VNET) - The industry is expected to experience a slowdown in 2026, with potential recovery in 2027 driven by AI demand and clarity on chip supply issues [2][10] Key Points and Arguments 1. **2026 Slowdown and 2027 Recovery**: - A slowdown in new wholesale orders was noted in 3Q25, attributed to large clients delaying capital expenditures due to uncertainties regarding chip resolutions [2] - GDS's adjusted EBITDA growth is forecasted to slow from 10% in 2025 to 6% in 2026, while VNET's growth is expected to decelerate from 21% to 19% in the same period [2] 2. **Market Resilience**: - Despite disappointing order numbers in 3Q, GDS and VNET's share prices remained resilient, with GDS up 15% and VNET up 8% post-results announcement, indicating that the market has already priced in the anticipated slowdown [3] 3. **REITs as Valuation Benchmarks**: - Both GDS and VNET completed their C-REIT and Private REIT issuances, which are seen as providing valuation benchmarks and future financing channels [4] 4. **Preference for VNET**: - VNET is expected to outperform GDS in growth due to better wholesale capacity utilization and lower electricity costs in Inner Mongolia, which is advantageous for securing large AI orders [5] - VNET is trading at a lower valuation of 10x 2026e EV/adj. EBITDA compared to GDS at 13x [5] 5. **Target Price Adjustments**: - Target prices for both companies have been raised, with GDS's target price increasing from USD 44.10 to USD 46.90 and VNET's from USD 11.40 to USD 14.40 [6] Financial Highlights - **GDS Financials**: - Revenue projections for GDS are CNY 10,322 million for 2024, increasing to CNY 14,053 million by 2027 [11] - Adjusted EBITDA is expected to decline from CNY 6,889 million in 2025 to CNY 5,275 million in 2026 [11] - **VNET Financials**: - VNET's revenue is projected to grow from CNY 8,259 million in 2024 to CNY 14,424 million by 2027 [19] - EBITDA is expected to increase from CNY 2,268 million in 2024 to CNY 4,913 million in 2027 [19] Additional Important Insights - **Risks**: - Potential risks include failure to secure new large orders, chip shortages affecting data centre utilization, and a slowdown in AI data centre investments [34] - **Valuation Methodology**: - GDS is valued using a sum of the parts (SOTP) approach, with a target EV/EBITDA multiple of 13x for its mainland China business and 21x for its international business, DayOne [27][31] - **Market Context**: - The report highlights the competitive landscape, comparing GDS and VNET with peers like Equinix and Digital Realty, indicating a need for strategic positioning in the evolving market [35] This summary encapsulates the critical insights from the conference call regarding the China data centre industry, focusing on GDS and VNET, their financial outlook, market dynamics, and potential risks.

Investment Rating - The report does not explicitly state an investment rating for the semiconductor industry or specific companies within it [12]. Core Insights - The semiconductor industry is experiencing a significant increase in demand, particularly in data centers focused on AI, with project requests growing 10-100 times over the past year [2][6]. - Seagate Technology (STX) has a positive outlook on demand, with order visibility extending through at least the end of 2026, and emphasizes that hard disk drives (HDD) will not be the primary bottleneck in data center construction as long as the industry maintains a 25% compound annual growth rate (CAGR) in bit shipments [4][7]. - The quantum computing sector faces substantial engineering challenges, with commercialization expected to be 4-5 years away, and differing opinions on the integration of classical computing with quantum technologies [3]. Summary by Sections Data Center Insights - T5 Data Centers reported a notable increase in project requests, with a focus on power availability and proximity to natural gas pipelines, particularly in Texas [2][6]. - The demand for power supply for data centers is strong, with customers looking to secure availability for 2027 [6]. Seagate Technology (STX) Insights - STX management indicated that they do not plan to increase unit capacity unless HDD becomes the tightest constraint, and they are currently focused on improving drive density [4][7]. - The company has qualified five public cloud customers for HAMR technology, with expectations for significant volume growth in the coming years [7]. Quantum Computing Insights - The quantum panel highlighted that while there is consensus on the significant engineering challenges, financing remains a bottleneck for progress [3]. - Participants noted that the path to commercialization and early applications remains unclear, with expectations for changes in post-quantum security as technology matures [3].

Core Insights - The article identifies 7 hidden multibagger stocks that have shown significant returns and potential upside, emphasizing the importance of selecting stocks with strong fundamentals and growth prospects [1][5]. Group 1: Stock Selection Criteria - Stocks were selected based on a minimum return of 75% over the past year and a market capitalization of at least $1 billion [1]. - The shortlisted stocks were required to have at least 30% potential upside, leading to a ranking of the top 7 stocks [1]. Group 2: Market Outlook - The S&P 500 index is expected to show positive performance for the third consecutive year, with AI adoption potentially driving a productivity boom similar to the late 90s [3]. - Goldman Sachs anticipates that reducing tariff uncertainties could enhance economic security, leading to increased capital deployment in defense, energy, and infrastructure sectors [4]. Group 3: Individual Stock Highlights - **Praxis Precision Medicines, Inc. (NASDAQ:PRAX)**: Achieved a 264% price return over the past year with a potential upside of 33%. The company reported positive results from a key study on a treatment for severe epilepsy [6][8]. - **Solaris Resources Inc. (NYSEAMERICAN:SLSR)**: Recorded a 139% price return with a potential upside of 43.36%. The company is focused on copper and other minerals, with a significant project expected to produce 4.5 million tonnes of Copper Equivalent [10][11]. - **Ouster Inc. (NASDAQ:OUST)**: Experienced a 138.5% price return and has a potential upside of 55.37%. The company is noted for its strong client base and growth prospects in lidar sensor technology [14][15]. - **Xeris Biopharma Holdings, Inc. (NASDAQ:XERS)**: Achieved a 75% price return with a potential upside of 61.3%. The company is advancing a new formulation for hypothyroidism treatment [18][19]. - **Applied Digital Corporation (NASDAQ:APLD)**: Saw a 192.6% price return and has a potential upside of 62.36%. The company is investing in advanced cooling systems for data centers, positioning itself for growth in the AI sector [21][22]. - **IREN Limited (NASDAQ:IREN)**: Recorded a 190.5% price return with a potential upside of 91.23%. Despite recent funding challenges, the company has strong fundamentals supported by a significant AI contract with Microsoft [24][26]. - **UniQURE (NASDAQ:QURE)**: Achieved a 186% price return with a potential upside of 117.16%. The company is developing a gene therapy for Huntington's disease, although it faces regulatory challenges [28][29].

Core Insights - The U.S. is lagging behind China in data center construction due to lengthy permit approval processes, which can take years, while China is able to build a new data center every month [1][2] - There is a pressing need for the U.S. to reduce bureaucratic hurdles and expedite construction to remain competitive in sectors like AI, energy, and cloud infrastructure [2][3] - The U.S. data centers currently consume a record 5% of total electricity demand, which is straining the power grid [5] Group 1: Industry Challenges - The permitting crisis is a significant barrier to competition in the data center sector, with lengthy approval times hindering development [2][3] - Energy demand is a critical issue, as the rapid growth of data centers is putting additional pressure on the already stretched U.S. power grids [5] Group 2: Comparative Analysis - The U.S. has 4,165 data centers, the highest number globally, compared to only 381 in China, highlighting the scale of U.S. infrastructure [5] - China is enhancing its data center expansion by reducing energy costs by up to 50% through subsidies, which supports domestic chip usage and growth [8]

Core Insights - The demand for artificial intelligence, cloud computing, and digital storage is driving a surge in data-center development across small-town America, with a significant concentration of activity in a small number of counties [1] - As of July 2025, approximately 1% of U.S. counties, around 33, account for 72% of all data-center activity, indicating a rapidly changing landscape [1] Group 1: Data Center Development - Newton County, Georgia, is experiencing a significant shift due to the influx of data centers, with 11 additional centers in various stages of planning or construction since January [9] - Meta's data center in Newton County has become a major economic anchor, creating hundreds of jobs and generating long-term tax revenue, contributing $12 million in cumulative tax revenue since 2022 [6][16] - The county's access to power, proximity to I-20, and established fiber infrastructure are key factors driving the rapid growth of data centers [13] Group 2: Community Impact and Concerns - Local officials and residents express mixed feelings about the rapid development, with concerns about future vacant structures and the impact on home values [18] - The pace of construction has raised safety concerns among residents, with reports of blasting causing damage to homes [21] - While companies like Meta and Amazon are making commitments to renewable energy and community support, residents worry that the promises do not always align with their experiences [17][25] Group 3: Future Outlook - The energy demand from data centers is projected to reach 8% of all U.S. power by 2030, necessitating an investment of around $50 billion in new generation capacity by U.S. utilities [23] - Local leaders and residents agree on the need for coordinated planning to address long-term consequences of rapid development rather than outright rejection of the industry [25]

Core View - Applied Digital and CoreWeave are both focusing on AI infrastructure but from different approaches [1] Company Summaries - Applied Digital is leveraging its resources to enhance AI infrastructure capabilities [1] - CoreWeave is also making strides in AI infrastructure, indicating a competitive landscape [1]

Core Viewpoint - SoftBank Group is in discussions to acquire DigitalBridge Group Inc., aiming to enhance its digital infrastructure portfolio amid a growing demand for AI-driven services [1][2]. Group 1: Acquisition Details - SoftBank is reportedly negotiating to buy DigitalBridge and take it private, with a potential deal expected to be finalized by the end of this year [2]. - The acquisition talks could lead to an agreement in the coming weeks, although no certainty exists regarding the outcome [2]. Group 2: Market Context - Investors have invested record capital into digital infrastructure this year, anticipating that increasing power demand will elevate data centers as valuable assets [3]. - McKinsey projects that spending on AI-linked infrastructure could reach $6.7 trillion by 2030, indicating a significant market opportunity [3]. Group 3: DigitalBridge Performance - DigitalBridge shares experienced a 45% increase, marking its largest one-day gain ever, following the news of SoftBank's acquisition discussions [4]. - The stock closed at $14.12, giving DigitalBridge a market value of $2.58 billion, despite a 13% decline in its stock price earlier this year [4]. Group 4: DigitalBridge's Assets - DigitalBridge, led by CEO Marc Ganzi, had assets under management valued at $108 billion as of September, with a portfolio that includes various digital infrastructure operators [5]. Group 5: SoftBank's Strategic Moves - SoftBank, under Masayoshi Son, aims to capitalize on the rising demand for computing capacity essential for AI applications [6]. - The company announced a $500 billion project called Stargate to build data centers in the U.S., in collaboration with OpenAI, Oracle Corp., and Abu Dhabi's MGX [6]. - However, the rollout of the Stargate project has faced delays due to disagreements over data center locations [7].

Group 1 - Global data center revenues are projected to increase significantly from approximately $420 billion to over $600 billion by 2029, driven by the demand for generative AI, mobile connectivity, smart grids, and other technology-based infrastructure [2] Group 2 - The investing group Yield Hunting focuses on providing income investors with opportunities that carry lower risks compared to the equity market, managing four portfolios with varying yield targets [1][3] - The group offers a monthly newsletter, weekly commentary, rankings of closed-end funds (CEFs) based on yield, trade alerts, and a chat feature for investor inquiries [1][3]

Group 1 - IREN Limited, formerly known as Iris Energy, is involved in building data centers for Bitcoin mining and AI startups, and has recently secured a contract with Microsoft [1][2] - The company issued nearly 40 million shares at $41.12 per share and a $1 billion convertible bond to finance its data center operations [1] - IREN operates a vertically integrated data center business, managing both computing hardware and infrastructure while engaging in Bitcoin mining [2] Group 2 - There is a belief that certain AI stocks may offer greater upside potential and carry less downside risk compared to IREN as an investment [3]

VANCOUVER, British Columbia, Dec. 05, 2025 (GLOBE NEWSWIRE) -- Carrier Connect Data Solutions Inc. (TSX.V:CCDS OTCQB:CCDSF; WKN:A40XB1) (the “Company” or “Carrier”), a data center company on a mission to roll up Tier II/III data centers internationally that specialize in delivering co-location, today announced that Mark Binns, CEO, will present live at the Small Cap Growth Virtual Investor Conference hosted by VirtualInvestorConferences.com, on December 9th DATE: December 9th TIME: 12:30 PM ETLINK: REGISTE ...